Keep Your Vehicle without Reaffirmation
Can you keep your vehicle without reaffirming its loan? Can you make the payments without reaffirming? What if you can't afford the payments?
Reaffirming your Vehicle Loan
If you want to keep your vehicle and still pay on its loan, file a Chapter 7 case to write off other debts and reaffirm the vehicle loan.
A Handy Guide to Chapter 7 vs. 13 for Your Secured Debts
When is it better to reaffirm your secured debt--such as a vehicle loan--in a Chapter 7 case or instead cram it down under Chapter 13?
Verifying that a Creditor Has a Valid Security Interest
A creditor's rights over you in either Chapter 7 or 13 vastly increase if it has a security interest. Now's the time to find out for sure.
Example of Reaffirmation Agreement vs. Cramdown of Vehicle Loan
Here's an example of the reaffirmation of a vehicle loan in a Chapter 7 case vs. "cramdown" of the debt in a Chapter 13 case.
Examples of Reaffirmation Agreement vs. Chapter 13
Here are examples of the reaffirmation of a secured debt (like a vehicle loan) in a Chapter 7 case vs. addressing it in a Chapter 13 case.
Reaffirmation Agreement vs. Chapter 13
When is it better to reaffirm a secured debt (such as a vehicle loan) in a Chapter 7 case vs. handling it instead in a Chapter 13 case?
Rescinding a Reaffirmation Agreement
Unlike most legal contracts, you can change your mind and undo a reaffirmation agreement during a short period of time after signing it.
The Reaffirmation Hearing
You don't need to go to a reaffirmation hearing, unless you don't have a lawyer, or he or she does not sign the reaffirmation agreement.
Reaffirming a Debt That’s Not Current
You usually have to get current on a secured debt before you can reaffirm it. But the terms of a reaffirmation agreement may be negotiable.
Be Cautious about Reaffirming a Debt
Reaffirming a debt, including a vehicle loan, can be a very sensible choice. But be fully aware of the risks and possible other options.
A Debt Reaffirmed under Chapter 7
You can usually keep collateral you need to keep by entering into a "reaffirmation agreement" with the creditor during your Chapter 7 case.
Exceptions to the Discharge of Debts in Chapter 7
Often all your debts are discharged--legally written off--in Chapter 7. But some you might want to pay, or might not be able to discharge.
Chapter 7 Buys Time to Redeem Your Vehicle
If your vehicle is worth less than its debt, and you can get the money representing that value, you can "redeem" the vehicle free and clear.
Keeping Your Vehicle in Chapter 7 through Redemption
If your vehicle is worth less than you owe on it, under Chapter 7 you can keep it by "redeeming" it--paying its present value in full.